Daily P&C Insurance News

California Regulators Approve 8.5% Auto Rate Increase for Major Insurers Amid Rising Claims

The California Department of Insurance has approved an average 8.5% rate hike for personal auto policies from State Farm and Allstate, citing increased repair costs and litigation expenses. This marks the second consecutive year of double-digit increases as carriers address wildfire-related losses and supply chain disruptions.

Three Major Home Insurers Pull Back from California Wildfire Zones

Farmers, USAA, and Liberty Mutual announced they will not renew approximately 15,000 high-risk wildfire policies in California. The move affects homeowners in fire-prone areas and increases pressure on the state’s FAIR Plan, which now faces $1.2 billion in potential assessments.

Reinsurers Demand 25% Harder California Renewals for 2026

Global reinsurers are quoting 25-35% higher rates for California property catastrophe coverage at April renewals due to poor loss experience. Capacity remains available but at significantly higher cost levels, particularly for Los Angeles basin and Northern California risks.

AI Underwriting Platforms Gain Ground with California P&C Carriers

Mercury Insurance and Bristol West have deployed AI-powered underwriting systems that reduced cycle times by 40% while improving risk selection accuracy. The platforms analyze satellite imagery, claims history, and climate data to better price California’s complex risks.

$2.1 Billion Los Angeles Wildfire Triggers Early Catastrophe Season Losses

A fast-moving wildfire in the San Gabriel Mountains has destroyed 1,200 structures and triggered $2.1 billion in insured losses. The event marks California’s costliest fire of 2026 so far and accelerates hardening market conditions across the state.